Shopping at Your Favorite Retailers Right Now Could Save You Money. Here's Why

It's a good time to stock up on essentials.

For months on end, retailers have grappled with supply chain shortages. That, in turn, has made it more expensive for stores to procure goods, leading to higher costs being passed on to consumers.

But right now, a number of big-name retailers are actually sitting on a surplus of inventory. And that could pave the way for big savings in the near term.

Stores are overstocked

Because of the aforementioned supply chain holdups, many retailers stocked up on merchandise to avoid having empty shelves. But over the past few months, inflation has driven many consumers to cut back on spending. And so now, a number of retails are actually sitting on extra inventory -- inventory they're looking to unload.

Of course, the best way to entice consumers to purchase goods is to offer them up at a discount. And that's exactly what major retailers like Walmart, Target, and Best Buy are planning to do in the near future.

Due to all of the excess inventory these stores have, consumers can, in the coming weeks and months, expect deals on items such as home goods, apparel, and electronics. And given that we're coming up on the back-to-school shopping season, the timing couldn't be better.

For many parents, loading up on back-to-school essentials is a financial burden. But if key items like clothing and sporting equipment are discounted, it could help cash-strapped consumers stretch their money even further.

How to shop strategically when items go on sale

Taking advantage of sales is a great way to save money on the things you need. But when retailers run sales and promotions, it can open the door to temptation, so it's important to approach your shopping strategically.

First, make a list of the items you need. Next, stick to it. If you need 10 new shirts for your child and you find them marked down from $11.99 to $7.99, great -- you just saved yourself $40. But if you don't need a $12.99 shirt for yourself and you buy one anyway because it's discounted from its original price of $29.99, you won't be saving $17 -- you'll be spending $17. Try to train your mind to note that distinction.

It's also a good idea to use a credit card for your purchases that will reward you with generous amounts of cash back. That's money you can pocket and save for other purposes, whether it's paying off some recent debt you incurred thanks to higher living costs, or giving yourself more leeway during the holidays.

The fact that a number of retail giants are planning to run sales is a positive thing. But be careful in the course of taking advantage. Do your best to only buy things you really need. And, ideally, only purchase items you can pay for in full. It may be tempting to stock up on extras at a time when they're discounted. But if doing so forces you to carry a credit card balance forward, you probably won't come out ahead financially at all when you factor in the interest you'll end up paying.